Telenor has agreed to acquire Tele2's residential fibre and cable TV business in Sweden for a total of €88.5 million in a bid to solidify its market position.
The Norway-based operator said that the deal, which involves a portfolio of nearly 400,000 households, will make it the second-biggest broadband supplier in Sweden.
All 68 employees from Tele2 are expected to transfer to Telenor once the regulatory hurdles have been overcome.
Tele2 Sweden’s residential cable and fibre operations reported a turnover of €60 million in 2012. Its customer base numbers 125,000 fixed broadband subscribers and 75,000 digital TV subscribers.
Telenor said that the transaction will result in a capital gain of approximately €28.5 million.
Lars-Åke Norling, CEO of Telenor Sweden, commented: "In today's society, access to high-capacity broadband plays a very central role for most people. Telenor aims to provide optimal connectivity and we want to continue our commitment on fixed broadband and TV through our brand Bredbandsbolaget. This topic is priority for us and our new customers and employees will play a vital role in our business going forward.”
Tele2’s enterprise fibre infrastructure and customers are not part of the transaction.
Thomas Ekman, CEO of Tele2 Sweden commented: “By selling our residential cable and fibre operations, we clearly establish our position as a mobile operator with a strong focus on mobile services. Moreover, the gains from this transaction will enable us to invest further in our mobile network, which is the very backbone of our operations.”